what is the best way to open an Llc as a real estate investor

[Moe Salem]

Hello everyone. 

I just started talking to a homeowner about purchasing her home and what would be the best price if I get her Cash for her home.

If I want this unit to be a whole sale unit, what would be the next step and how would I go with opening an LLC For wholesaling?

Thank you for your answers!

[Jeff V.]

@Moe Salem 

The answer to the question in the headline is simple.  It's a $75 filing fee with the secretary of state and you can file online on the secretary of state website: 

http://www.sos.la.gov/

Now for the questions not asked but implied... Do you need an LLC for your wholesaling business?

The purpose for an LLC is to protect your personal assets from any liabilities initiated from normal operation of your business. IMHO $75 is a cheap insurance to shield your home and savings from anything that may go wrong within your business.

Just my 2 cents on the subject. If your holding real estate there will be more risk for lawsuits than there will be in wholesaling. However, Wholesaling still involves contracts and money changing hands and one of the main reasons that we use contracts is that people make agreements and then change their mind later and then a lawsuit can occur. Therefore a "Wholesaling" business is not free from liability even though you will not be holding on to the property. This would be a good discussion for your Lawyer on whether you should form an LLC or not.

From a tax perspective the LLC is a flow through entity and files no tax return on it's own so it will not help or hurt you on the tax side.

I'm neither a CPA nor an Attorney and both should probably be consulted on this matter.  This is just my opinion based on the information that I have researched in setting up my business.

Thanks,

Jeff V